A new report from research platform Attest has outlined the potential retail trends that could shape the coming year, with consumers divided on how they want to shop.
Now in its third edition, the firm’s UK Consumer Trends report is set out to track sentiment and behavior displayed by customers in the region.
For 2023, the data revealed contrasting feelings among consumers, with 46 percent feeling positive about the year ahead, compared to 30 percent feeling negative.
In a release, Jeremy King, CEO and founder of Attest, said changes in “fundamental behaviour” were also evident in the report.
King continued: “Frugality is on the spectrum between necessary and fashionable.
“This research paints a picture of consumers trying to respond to worsening economic conditions – with tectonic shifts in expectations, perceptions, channels and values - meaning brands now more than ever need to stay on top of consumers’ changing needs and wants to succeed. “
Buyers tighten budgets for 2023
As expected, and falling in line with rising living costs, consumers are said to be pulling back on spending for the new year, with other bills, such as energy and petrol, cited as the biggest reason for this shift. A total of 61 percent said they were tightening their budgets, while only 18 percent said they would spend “freely.”
Physical stores preferred by older shoppers
According to Attest, despite smaller budgets, shoppers are still expected to go to the stores as often as “normal”. The platform found a 6.2-point increase in people who shopped daily or weekly, a number driven by Boomers, more than 40 percent of whom said they now “mostly or always” shopped at the store. Meanwhile, younger shoppers still apparently prefer online, with 47.2 percent of Gen Z leaning toward digital shopping, compared to 49.7 percent of Millennials.
Discount shopping to have its heyday
Attest noted that “rampant consumerism” was going “out of fashion” in the report, and called frugality “cool” for 2023. While 40 percent of consumers said they were going to buy fewer things, 44 percent were looking to sell unwanted items. Meanwhile, shopping at charity and discount stores is set to increase, with 35 per cent of consumers stating that they would be looking for a bargain in these types of stores. In addition, 23.5 percent of consumers added that they would buy less fast fashion items in the coming year.